Danone Case Study

Topics: Knowledge management, Tacit knowledge, Management Pages: 22 (7355 words) Published: August 17, 2012
Case Study

Contents Page

Executive SummaryPg. 3

IntroductionPg. 4

BackgroundPg. 4

ProblemsPg. 5

Issue 1- Lack of formal IT systemsPg. 5

Issue 2-Lack of incentives & rewardsPg. 5

Issue 3-Geographical dispersionPg. 6

Issue 4-Development of Networking
AttitudePg. 8
-Why should the issue be addressedPg. 8
-Competitive AdvantagePg. 9

Recommendations/ StrategiesPg. 10

Advantages & DissadvantagesAPPENDIX

Deeper strategiesPg. 10
-MarketplacesPg. 11
-Who’s whoPg. 11
-CommunitiesPg. 12

Risks & BarriersPg. 13
-Marketplaces Pg. 13
-Who’s whoPg. 13
-CommunitiesPg. 14

Richer & WiderPg. 15

Rewards and incentives recommendationsPg. 15

IT systems/ formal structure recommendationsPg. 17

Conclusion Pg. 18
AppendixPg. 19
ReferencesPg. 23
Executive summary

Long term success of Danone relates closely to the importance of knowledge management; focusing on sharing and retaining knowledge within the organization. Making sure the company is well prepared for to react to changes. Danone has created programs to enforce knowledge management in different ways. Main problems have been discussed and each of the issues outlined have certain recommendations that Danone would benefit from, helping to improve knowledge management. Lacking of formal information technology systems is an issue as formalize data is absent, especially from group sharing periods. The learning within the company should stay in within, even if employees do not, so documentation through formal systems is a key. The size of Danone also contributes to the information systems being necessary. The second issue outlined is the lack of incentives and rewards. Encouragement and motivation need to be used for employees to make use of networking systems, on top of the their original workload. Thirdly the communication has to be evident to link members around the organization, which is spread around the world. Recognition of culture by management will help achieve effective communication ideal for the ranging culture at Danone. Decentralization is a strategy suggested that need improvement-enabling employees to share practices. The fourth issue is the need for development of the already implemented Networking Attitudes for future success. Each issue has certain recommendations. Going “Deeper” is the best strategy out of the three suggested from the analysis looking at the advantages and disadvantages of both. Networking Attitudes ideally will take this “deeper” approach over “wider” or “richer”. Having cost efficiency and significant benefits. “Deeper” implementation will affect marketplaces, who’s who and communities. Each implementation comes with risks and barriers that need consideration before applying. Overall knowledge management is a significant component of the organization to keep a competitive advantage.

As globalization is leading more and more companies into the international business context, a much greater importance is being placed on knowledge management. The most basic resource, and also the most important, will always be knowledge (Drucker 1993, p8). It allows the company to be able to sense any changes, and to adapt and respond. In the end, this determines the success of the company (Gates 1999, p23). Danone is an organisation that does not believe the traditional technological methods of knowledge management are appropriate for the organization (Edmondson, et al., 2008). The company has taken a strong informal networking attitude to create a sharing culture within the organisation and its employees. The company prides itself on its spontaneous nature within networking and its ability to develop new...
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